In case you were thinking that an STO is some type of new STD classification you would be wrong. Although I could see how you would get to that conclusion.
STO means Security Token Offering and security tokens are simply a digital representation of a trade-able, valuable asset. These behave similarly to traditional securities which hold real value. This is why security tokens must be regulated under the federal securities regulations. One of the prerequisites to be a security token is to pass the Howey Test.
All Security Tokens are subject to basic security regulations, according to which the investors as well as security token providers must be properly accredited.
The security token infrastructure is growing up. A majority of the work going on is not as visible as the cryptocurrency space as it deals directly with regulation, compliance and traditional finance more than our friend Bitcoin does.
Security Tokens in Context
While the world around us is being reshaped by chaos and confusion, I honestly see STO’s as being a big net winner in the long term. As traditional markets are being tested by a 1-in-100 year deleveraging event, the public are calling institutional trust into question, and for good reason.
